Global Car Rental Market to Rise at 7% CAGR between 2019 and 2029
The global car rental market is valued at US$ 116 Bn in the year 2019 and is expected to register a CAGR of 7.0% during the forecast period of 2019-2029. North America is anticipated to hold the highest revenue share in 2019 in the global car rental market, while East Asia is expected to account for the highest growth rate in the car rental market as compared to other regions.
FAQ – Car Rental Market
How will the car rental market be critical in the future?
Car rental market is expected to register a modest CAGR during the forecast period of 2019-2029, owing to the increasing number of commuter’s worldwide, increasing tourism, growing use of car rentals for daily commuting and intercity travel, and high adoption rate of mobile platforms to book car rental services.
Which will be the preferred booking mode in future?
Mobile applications segment is expected to see robust growth during the forecast period, followed by other internet access modes, as compared to the offline segment. Growing number of platforms such as Uber, and Lyft dominate the U.S. market. Other internet access segment that includes car rental from websites is also expected to grow substantially during the forecast period.
What type of car is expected to be preferred by customers?
In 2029, intermediate cars are expected to be the most preferred car type and hold the highest share in terms of value in the global car rental market. It is also expected to register the highest CAGR during the forecast period of 2019-2029, and dominate the car type segment by 2029.
What will be the future trend in car rental market?
Innovative offerings by the car rental companies are anticipated to change the market landscape. FMI has identified driverless car rentals as the future trend in car rental market.
Which customer group holds the largest market share? Which customer group is anticipated to hold the majority of the market share during the forecast period?
The car rental market is primarily divided into two categories- business and leisure. Customers from the business category held the major market share in 2019. However, customers from the leisure group are expected to drive the market forward, owing to increasing tourist number in countries. Leisure group customers represent the highest CAGR during the forecast period, and are expected to hold the highest value share by 2029.
Which region is expected to emerge as the most lucrative for players in the car rental market?
East Asia is expected to register at highest CAGR (~11%) during the forecast with the presence of two major car rental market China, and Japan. India is expected to drive the growth of the South Asia car rental market.
Rising On-airport Car Rentals Boost Growth Opportunities
Worldwide growing tourism, especially of tourists using airplanes for business & leisure, primarily drives the growth of the car rental market across the globe. Growing tourism activity ensures higher demand for car rental services as renting a car is identified one of the most preferred modes of transportation for business and leisure. Moreover, airports are mostly situated outside of the city, which increases need for hiring car rental services for faster movement. People travelling for business, often use car rental services due to greater comfort, and faster commuting. In 2018, as per United States Department of Transportation (Bureau of Transportation Statistics) the total number of passengers were ~1,013 million (including domestic & international airport) for all U.S. and foreign carriers.
Recent studies show that car rentals for intercity and intracity travels have considerably increased over the past few years. The trend is unlikely to diminish in the coming years, giving considerable impetus to the market.
North America and Europe to Dominate Car Rental Market
North America currently holds the dominant share in the global car rental market. In the coming years, however, demand is likely to increase from East Asia as well. The expansion of tourism in China and Japan will create lucrative growth opportunities for the market in East China. In addition to this, infrastructural growth, rise in government spending, and the flourishing medical tourism sector in these countries will fuel the demand for car rentals. Largely, factors such as easy booking of rental cars through online channels, increasing globalization of corporate operations, growth in the travel and tourism domain, growth in air travel, and shift in customer preference towards comfort travelling are influencing the growth of the U.S. car rental industry.
Increasing Usage of Online Platforms to Bolster Growth
Car rental has become popular across the globe, owing to easy booking and availability through online platforms. Tourists mostly prefer use of online booking platform as it provides an easy, hassle-free money transfer facility through digital payment, along with live tracking and enhanced safety. Increasing number of smartphone users and growing penetration of internet plays a crucial role in the car rental market. Daily commuters prefer online platforms to book shared cabs for office commute or riding within city. Lyft is among the companies that offers a ride sharing option, which is a global trend. In 2019, developed regions such as North America and Europe had a high penetration rate for internet (more than 85%). In the U.S. alone, the number of smartphone users were as 257 million in 2017, and share of the population that uses smartphones was ~70%.
Economy Cars holds leading revenue share
Intermediate Cars to showcase noteworthy CAGR
On-Airport holds leading revenue share
On-Airport to showcase noteworthy CAGR
Business Type holds leading revenue share
Leisure Type to showcase noteworthy CAGR
Offline Access holds leading revenue share
Mobile Application to showcase noteworthy CAGR
How Growth will Unfold
Economy cars are identified as the most preferred mode of transport in the global car rental market. Economy car rental services offer less expensive rides, which are affordable to mass customers. In contrast, customers on business and leisure trips prefer luxury and premium car rental services. However, majority of riders or customers prefer economy cars. The sharing/pooling concept also attracts customers with a pre-determined mindset for less expensive ride. These factors along with the high availability of such cars accelerates the demand for economy cars in car rental services market. Growing health & environment consciousness has led the customers to adopt earth-friendly products and services. Rising concern regarding pollution has pushed the conscious riders to opt for sharing cabs or sharing car rental services for lower emissions, which reduces air pollution levels and number of cars on the road.
* This data is only a representation. Actual data may vary and will be available in report.Click Here To Know How The Growth Will Unfold
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Car Rental Market: Global Industry Analysis 2014 - 2018 and Opportunity Assessment 2019 - 2029
A recent market study published by Future Market Insights on the car rental market offers global industry analysis for 2014-2018 and opportunity assessment from 2019-2029, and provides a comprehensive assessment of the most important market dynamics. After conducting thorough research on historic as well as current growth parameters, growth prospects of the market are obtained with maximum precision.
Car Rental Market Taxonomy
The global car rental market is segmented in detail to cover every aspect of the market, and present a complete market intelligence approach to readers. The segmentation is done on the basis of car type, end-use, customer type, booking mode, sector, and region.
- Economy Cars
- Compact Cars
- Intermediate Cars
- Premium Cars
- Luxury Cars
- Offline Access
- Mobile Applications
- Other Internet Access
- North America
- Latin America
- South Asia
- East Asia
- Middle East & Africa
The report begins with the executive summary of the car rental market, which includes a summary of key findings and key statistics of the market. It also includes market value (US$ million) estimates of leading segments in the car rental market.
Readers can find the detailed segmentation and definition of the car rental market in this chapter, which will help them understand basic information about the market. This section also highlights the inclusions and exclusions, which helps the reader in understanding the scope of the car rental market report.
The report provides key market trends that are expected to impact market growth significantly during the forecast period. Detailed industry trends are provided in this section, along with key market developments or product innovations.
This section includes key inclusions of the report. It offers product impact analysis on consumer sentiment, spending capability, prominent sales channel partners, and other success factors that affect the industry.
This chapter explains key macroeconomic factors that are expected to influence the growth of the car rental market over the forecast period along with macroeconomic factors. This section also highlights the opportunity analysis for the market. It also offers key market dynamics of the car rental market, which include drivers, restraints, and trends. Moreover, it will help readers understand key trends followed by leading manufacturers in the car rental market.
This chapter includes the detailed analysis of the historical car rental market value, along with an opportunity analysis of the future. Readers can also find the absolute opportunity for the current year (2019–2020), and an incremental opportunity for the forecast period (2019 – 2029).
Based on car type, the car rental market is segmented into economy cars, compact cars, intermediate cars, premium cars, luxury cars, and others. In this chapter, readers can find market attractiveness analysis, based on car type.
This chapter provides various details about the car rental market on the basis of end use, intercity, intracity, on-airport, and others. In this chapter, readers can understand the market attractiveness analysis, based on the end use.
This chapter provides details about the car rental market on the basis of customer type, and has been classified into business and leisure along with a market attractiveness analysis.
This chapter provides details about the car rental market on the basis of booking mode, and has been classified into offline access, mobile applications, and other internet access along with a market attractiveness analysis.
This chapter provides details about the car rental market on the basis of sector, and has been classified into organised and unorganised along with a market attractiveness analysis.
This chapter explains how the car rental market is expected to grow across various geographic regions, such as North America, South America, Europe, East Asia, South Asia, Oceania, and the Middle East and Africa (MEA).
This chapter includes a detailed analysis of the growth of the North America car rental market, along with a country-wise assessment that includes the U.S. and Canada. This chapter also includes growth prospects of the market in North America countries such as the U.S. and Canada.
Readers can find detailed information about several factors impacting the growth of the Latin America car rental market. This chapter also includes growth prospects of the market in leading LATAM countries such as Brazil, Mexico, and the rest of Latin America.
Important growth prospects of the car rental market in several countries, such as Germany, the UK, France, Spain, Italy, Nordic countries, BENELUX, and the rest of Europe, are included in this chapter.
India, Thailand, Indonesia, Malaysia are leading countries in the South Asia region, which are prime subjects of assessment to obtain growth prospects of the market. Readers can also find detailed information about growth parameters of the South Asia car rental market during the forecast period.
This chapter highlights the growth of the car rental market in East Asia by focusing on China, Japan, and South Korea. This section also helps readers to understand key factors that are responsible for the growth of the car rental market in East Asia.
This chapter highlights the growth of the car rental market in Oceania by focusing on Australia and New Zealand. This section also helps readers in understanding key factors that are responsible for the growth of the car rental market in Oceania.
This chapter provides information about how the car rental market is anticipated to grow in major countries of the MEA region, such as GCC Countries, and South Africa during the forecast period.
This chapter provides information market analysis of companies, market concentration of companies, market share of top players and their presence.
In this chapter, readers can find a comprehensive list of all leading stakeholders in the car rental market, along with detailed information about each company, which includes the company overview, revenue shares, strategic overview, and recent company developments. Some market players featured in the report are Enterprise Holdings, The Hertz Corporation, Avis Budget Group, Europcar Group, Carzonrent, Sixt SE, and others.
This chapter helps readers understand the research methodology followed to obtain various conclusions, as well as important qualitative and quantitative information, about the car rental market.
How the research was conducted?
Primary research interviews with key opinion leaders and other participants were conducted for data collection and validation of the below information:
- New developments in car rental manufacturing
- Leading players in car rental industry
- Key strategies followed by car rental companies
- Key developments in car rental market
- Key trends and opportunities
- Region-wise dynamics
- Market share information
- Competition & key vendor strategies of car rental service providers.
- American Car Rental Association
- The American Rental Association
- ACRISS – The Association of Car Rental Industry System
- European Car and Truck Rental Association
- ERA European Rental Association
- National Travel & Tourism Office
- World Bank
- World Travel and Tourism Council
Primary Interview Splits